Correlation Between Tryg AS and GN Store
Can any of the company-specific risk be diversified away by investing in both Tryg AS and GN Store at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tryg AS and GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tryg AS and GN Store Nord, you can compare the effects of market volatilities on Tryg AS and GN Store and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tryg AS with a short position of GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tryg AS and GN Store.
Diversification Opportunities for Tryg AS and GN Store
Pay attention - limited upside
The 3 months correlation between Tryg and GN Store is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tryg AS and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord and Tryg AS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tryg AS are associated (or correlated) with GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Tryg AS i.e., Tryg AS and GN Store go up and down completely randomly.
Pair Corralation between Tryg AS and GN Store
Assuming the 90 days trading horizon Tryg AS is expected to under-perform the GN Store. But the stock apears to be less risky and, when comparing its historical volatility, Tryg AS is 2.66 times less risky than GN Store. The stock trades about -0.06 of its potential returns per unit of risk. The GN Store Nord is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 13,150 in GN Store Nord on August 29, 2024 and sell it today you would earn a total of 25.00 from holding GN Store Nord or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tryg AS vs. GN Store Nord
Performance |
| Timeline |
| Tryg AS |
| GN Store Nord |
Tryg AS and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tryg AS and GN Store
The main advantage of trading using opposite Tryg AS and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tryg AS position performs unexpectedly, GN Store can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GN Store will offset losses from the drop in GN Store's long position.| Tryg AS vs. Dataproces Group AS | Tryg AS vs. cBrain AS | Tryg AS vs. ALK Abell AS | Tryg AS vs. ChemoMetec AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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